Asked government to allocate its blocks to other companies: Jaypee Cement

Coal from Mandla South and Majra coal blocks vested was to be utilised for the Balaji cement plant and its two captive power plants and another such power plant at Shahabad.Sarita Singh | ET Bureau | November 25, 2016, 18:30 IST

NEW DELHI: Jaypee Cement has said it has requested the central government to allocate two captive coal blocks that the company had won in auctions to other firms that may be in need of fuel.

ET had reported on October 20 that Jaypee Cement has sought the coal ministry’s nod to surrender two captive coal blocks—Majra in Maharashtra and Mandla South in Madhya Pradesh—as it has sold off the attached cement plants.

Coal from Mandla South and Majra coal blocks vested was to be utilised for the Balaji cement plant and its two captive power plants and another such power plant at Shahabad.

"Both cement and captive power plants of Jaypee Balaji cement plant are being acquired by Ultratech Cement but they have shown no interest in taking the coal block. No other cement or captive cement plant, as specified under Coal Mining Development and Production Agreement (CMDPA), is located in the vicinity of the coal block," the company said in reply to ET’s emailed query on the matter.

According to Jaypee Cement, no other end-use plant for transfer to this coal block is available, and sale of excess coal to Coal India is not commercially viable.

"In view of the above, it would be most appropriate for the central government to prevent idling of natural national resource. With this in mind, the company has requested the central government to reallocate the said two coal blocks at Mandla South and Majra to companies in need of coal," Jaypee Cement said.

According to the company, it has not received any response from the nominated authority.

Currently, the Goods and Services Tax (GST) is levied at 12 per cent on payments made for under-construction property or ready-to-move-in flats where completion certificate has not been issued at the time of sale.